On 4 May 2022, the European Banking Authority (EBA) issued a report on non-bank lending. The report is in response to the European Commission’s February 2021 Call for Advice on this topic.

The report is based on a survey that the EBA launched among Member State competent authorities to gather information about entities carrying out non-bank lending in their jurisdictions. In particular, the survey collected information on the presence of certain business models whereby lending activities were carried out by non-bank entities, and any regulatory requirements that are applicable at local level. The survey also collected the views of supervisors on the risks currently posed by non-bank lending activities in the EU.

The report:

  • Provides a brief overview of the most recent trends and market developments both in the EU and outside the EU on lending provided by non-bank entities with a particular focus on BigTechs and FinTechs (section 2).
  • Outlines the EU legislative framework (section 3).
  • Summarises the results of the survey conducted at Member State competent authorities in terms of business models and applicable regulatory frameworks (sections 5 and 6).
  • Covers the main issues identified in the area of supervision and scope of prudential regulation, consumer protection, anti-money laundering, macro-prudential and micro-prudential risks (section 7).
  • Sets out proposals for the risks that have been identified (section 8).